All Forum Posts by: Julian F.

Where does this info come from?

Yes, i would definitely have a home inspection done. Exit strategy is wait 2-15 years for a better market, then refinance or sell.

This partner is a distant friend of mine, he would want to be in until the end. When i say get his money back in 5.6 years, i don't mean it like paying back a loan. I think in terms of if I invest $10,000, how long will it take to get my $10,000 back, while still holding the investment.

In this case, he is waiting 5.6 years to be paid back his cash (+ 50% stake) at a 20% risk, and i am in for infinite return (+50% stake) at 80% risk. Would a more experienced person do this deal?

My lender has told me that he's done other deals with 1 person on loan, 2 people on title.

one deal we were looking at (3 yr old house, 4br/2ba, 1500sq/ft), if they accepted the offer of $55k (asking $67k)
was renting for $1250.

From that, i got $7050 expenses, $3166 mortgage payments, $3884 cashflow, $525 principal paydown.

This would ideally have the down payment paid back in 2.8 years. In our case, im actually taking 50% of the cashflow, so it would take the downpayee twice as long to get his investment back (5.6 years).

Im not too worried about a huge expense coming up with the house, being that we are buying a less than 10 year old property. Unless an eviction/trashing comes up, and we should be able to afford that. The vacancy rate is at 6%, so we should have it well rented.

What do you think, good risk management?

The mortgage would be in my name, the deed, in both our names.

My broker said his bank can accept a gift letter from the cash partner. As long as the cash is traceable.

Its a buy and hold property with positive cashflow. I'm doing about 90% of the work. Its basically my deal, and im offering the opportunity to others for 50% for the down payment.

Trying to find a turn-key property with no rehab. If there is a good deal with a little work to be done, its no problem coming up with a few grand. Cash reserves will be covered 50/50 (it would come out of our savings to start).

Although I'm on the hook for the 80%, i was thinking its worth it for a zero down investment... Just looking for more experienced opinions on if this is good risk management. Thanks.

What do you think has more risk, carrying the 80% mortgage, or putting down the 20% cash?

Im doing a 50/50 partnership. 1 of us gets the loan, 1 of us ponies up the 20%.

I'm looking to be a long distance investor. My area doesn't know what cash flow is.

I've decided to buy in Texas, near Dallas. Assuming i am buying in a middle class area, do I need to worry about the specific neighborhood? or just assume that all neighborhoods in this city and price range will have a very similar vacancy rate and a similar future appreciation?

I just want to be sure the part of town that i choose will be desirable to tenants and will attract high quality tenants. Would all neighborhoods in a given price range be equal in this criteria? I'm assuming middle class neighborhoods in the $70k-$80k price range, not very poor areas.
Thanks

50% off comps? or the asking price? sometimes the asking price is already discounted...

Can i put the mortgage notes in my name for now, then later transfer them to an LLC? or get a commercial loan to pay them off?
I just don't want to limit myself from the start.
Thanks.

I have a few interested partners with down payment cash. I would be carrying the mortgages, and we would do a 50/50 ownership deal with traditional 20/80 financing.

I am looking to pickup more than 4 properties this way. I'm wondering if it will be harder to get lender approval after having a few mortgages in my name. I do not have any mortgages now.

I have excellent credit and a great income to debt/expense ratio. I'm thinking that with each positive cash flow property, my expenses will go up, but my income will go up even higher. So i should still maintain a great income to debt/expense ratio, right?